(Reuters) European private equity firm BC Partners is to buy a majority stake in Dutch flower breeder Dummen Orange, the companies said on Friday.
The deal values Dummen Orange at around 500 million euros ($567.65 million) including debt, meaning a multiple of around 11 times its core earnings (EBITDA), a source familiar with the matter said.
The company is owned by the Dummen family and investment firm H2 Equity partners and has farms in Central America and East Africa. Its products include cut flowers and potted plants.
UBS and RBC are providing the debt for the transaction, the source added.
Dummen Orange is not the first flower company to catch private equity’s eye. Last year U.S. buyout house KKR made its first venture into Africa with the purchase of a rose farm.
Swiss chemicals company Syngenta is also in the process of selling its flower seeds unit.
BC Partners bought Britain’s Cote restaurant brand earlier this year. Reuters previously reported that the buyout house is currently seeking 7 billion euros ($7.95 billion) for its latest fund.
Private equity firms have struggled to find suitable buying targets in recent months, with many suitable assets instead listing on the stock markets or being snapped up by other companies in the target’s sector, or so-called trade buyers.